I have $13 000 emergency fund and no debts. But I also live very frugally, well beneath my means. Not everyone's cup of tea, but I feel so free living this way.
Jade's subtle look away at 2:02 speaks volumes. Dave's been working on it, but he has a problem cutting off his co-hosts. His daughter's the only one who's openly called him out on it, but im sure its frustrating to everyone. However, it is his show.. and company. Lol
We have 2 year worth of emergency fund and helps me sleep at night. Paid off house, 0 debt of any kind, and we max out our 401k and Roth IRA each year and fund 2 kids 529s a month as well.
For emergency funds it depends on living situation a bit IMO Younger Single Person living at home, already paid for student housing or some other supported situation, then 2-3 months with $5k minimum should work fine. Single or Married without kids, then 3-4 months with a $10k minimum Family with kid(s) or expecting, then 6 months with a $20k minimum. Self employed or other job insecurities, then 12 months with a $40k minimum. Retired or within a year from retirement, then 12-24 months with an $80k minimum.
The “you’re a good dad, you’re a good man” is pretty wholesome tbh. Any guy would love hearing that especially from someone who’s as analytical as Dave
What event would require more then 6 months of expenses? UM, what happened 3 years ago? He has a video production business. How about the strike for the last that lasted for the last 6 months. He or his wife can have health problems. Or even both of them.
Just because Dave Ramsey says "At the very least, have $1,000 in your emergency fund.", that doesn't mean you have to have $1,000 in your emergency fund, exactly. My sister set up her emergency fund, a long time ago & has $1,200 in it & said "I know Dave Ramsey says to keep $1,000 in your emergency fund, but, I can spare the extra $200, so, it never hurts to have a little bit extra in there...".
12 months minimum. Most people miss calculate just how hard it becomes to find a job during a full blown recession. Plus, you need to consider that once you do manage to find a new job your fund might be run dry and you will need to replenish quick In London during the GFC those that were unfortunate to lose their job took 6-12 months to find a job and most jobs they found were part time, low income jobs. Even trying to find a cafe, bar waiter job was difficult and you had 20 shortlisted people lining up and competing for 1 cafe position
It's not JUST an emergency fund. It's also cash available for big purchases like water heaters, AC systems, new roof, VEEhickle replacement, etc. It's both.
@Lisa-eo9gd this is correct, vehicle replacement is a known coming thing, roof replacement also, it's not like you wake up on day and your roof is 30 years old and surprised a leak started. If you know your roof is getting old plan for it with a sinking fund to be prepared for ir when it's needed, that wouldn't be considered a surprise or emergency. They voluntarily made it an emergency. We even have a seperate sinking fund for health insurance annual max out of pocket when needed. Work the baby steps and get to steps 4-6 and this is when the financial freedom takes over and really makes it easy to build these funds, fund retirement greatly, and be able to make big purchases easily when you get to actually keep your income instead of paying it back out yo everyone else all the time
@Lisa-eo9gd Fine, but for practical purposes I've got all my dollars in HYSA/Ibonds. About 7.5 months, which combines an emergency fund and sinking fund for 2 people employed in completely layoff-proof jobs. I assume the caller is doing the same. Lumping his sinking funds and efunds together. Do people really have a HYSA at Ally for their water heater, Marcus for their AC, Discover for their other appliances, another one for roof, another one for car, and yet another account for their "emergency fund"? That's stupid. You can mix the dollars together.
Just had to drop $3k to fix my car . With a 2yr old and another kid on the way. I try to always keep a $10k emergency fund if I can. Doesn’t always work out but you gotta live off less than you make
Starting a Business is not a Joke. It takes time and effort and you need to have enough knowledge. There is a risk and alot of things for learning. Not easy but possible.
In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.
If you need advice, consider speaking with a financial advisor. Don't get me wrong, you can do it on your own, but financial advisors have a lot more knowledge and expertise in this area.
you are completely right, Advisors have information and paths that are not disclosed to the public.. I profited £560k in 2022 under the tutelage of my Fiduciary-counselor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.
My CFA ’Margaret Johnson Arndt’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I have 12 months of EF. I've been laid off 3x in my career, always found a job within 3 months. As a 48 yr old with 2 college age kids, 1 income, I feel less anxious with a 1 year EF. I contribute to retirement, brokerage account, and paying down mortgage. On baby steps 5-6. spend below my means. Yes I'm doing Ramseyish, feel more comfortable with a bigger EF. great content. thanks for sharing.
Guys, its not about how much you make a year but how long you can survive if you were to lose your job today. You should strive to have passive incomes from rental properties, investments, interests, etc that will provide you with enough money to pay your bills, foods, etc each month with a little extra for savings. That is the true definition of being wealthy. You dont need to be millionaire to be consider wealthy. Just dont buy expensive cars, go on vacations, eat out, etc. If your passive income is more than your monthly expenses, than you considered wealthy. You can retire at that point and not worry about not having enough money. That will put your mind at ease.
@01:00 Extended Hospital Stays/Medical Leave of Absences perhaps(yes there’s Short and Long Term Disability Benefits, but that’s a percentage of your salary).
@@spankynater4242 All the time. He didn't even acknowledge inflation until months after it was affecting his callers. Like, he legitimately thinks by not talking about something it'll just go away.
Water heaters, roofs, septic systems, and new A/C systems are all good reasons why renting isn’t evil like so many make it out to be. Pay for any two of those in a year and see how much you like being home owner.
Still better (maybe not with the houseprices today) than renting, because you will need it when you retire to have more predictable expenses when you get old.
If your house payment is $4,200, then you should have around 100k in savings. Dave is out of touch on what it cost to raise kids in a nice house now days.
Cancer is the answer. That could keep you out of work longer than 6 months. Not just treatment but recovery afterwards. It can take over a year *after chemo* to get back in to full time work. Even if you work from home, you’ll spend loads of time at doctors appointments
If, however, you're fully FI retired in your 50s with no debts, you should have 3 to 4 years of living expenses in cash to ride out protracted bear markets (peak to trough to new peak time frame) so you do not sell shares of mutual funds at or near the bottom.
I have 100k in savings too... and I have 100k annual income with zero debt with cars and house paid for and im not a dad lol. I am aggressively investing 75 percent of my income because I am 42 and only have 44k in retirement. I am hoping to catch up on retirement 🙏
Funny thing though, I have an emergency fund of $39k, but also have another $250k sitting in savings accounts. I know, it's shocking to me too but I'm working on investing all of it. I already invested $150k that was there before. Basically, why I did it, was because I didn't know anything about investing until the pandemic hit and then i started reading books and watching TH-cam videos on investing. It's gonna be a little while before all the money is invested, but I'll get there.
Put it in a high yield savings account and leave it alone until you need it. Wherever you have your IRA probably offers a HYSA, too. I know ETrade, Fidelity and Vanguard do.
Being 55 I no longer need much of an emergency fund. The only reason I would need it would be if my wife and I both lost our jobs at which point I guess we are retired and I’ll pull from my 401k without penalty.
earliest you can pull money out without penalty is 59.5 years old. also when you are retired it's far better to have 1 - 4 years in high yield savings, if the market goes down 20% you don't want to be forced to sell stock 20% down just to pay the bills and buy food. you have a few years worth so that when the market goes down you let it ride and live off savings. and then sell once it comes back up.
@@JosiahK555 Have you heard of “the rule of 55”? If you separate from your employer during or after the year that you turn 55 you have access to the money in that employer’s 401k penalty free.
$300k a year is not much monthly if you pay taxes. You are in one of the highest tax brackets and once you put 15% in a 401k, ROTH IRA, etc., health insurance, etc.; it is more like making $100K Edit: Then you have home insurance, car insurance, property taxes, food, utilities, etc.
high tax. making $300k a year, it is in HCOL, so prices for sfh usually between $1M-$3M, so $300k isnt much. cant buy in cash with houses 3x-10x your gross income
Such things belong in the 1800s. Ounces of anything have no place in the 21st century. And gold and silver won't help you. You'll be just as screwed with them as without them@@RusskiCommieBot
@aolvaar8792 aren't all emergency funds cash in the bank? Coz that's what i was talking about. Maybe -6months to 1 year in the bank and 1 year invested but can be easily liquidated/accessed.
@@aolvaar8792you can have it in a hight yield savings account which would bring in some money. It's easy to move it to your checking account if you need it.
*My greatest concern is how to recover from all these economic and global troubles and stay afloat especially with the political power tussle going on in US. The government has really called things more difficult for its citizens, and we can't sit back and bear all the consequences of the bad governance. We need to take our financial life serious….. I recommend stock market investment and digital currencies*
After I got upto 500k trading with Mrs Eleanor Nelson, I bought a new House, a new car and I'm now able to send my kids to a better school in the states When someone is straight forward with what he or she is doing people will always speak up for them.
I am from Denver Colorado USA I connected with her and she has helped me a lot,she makes so much profit for me she is a FINRA agent, the best I can invest with so far ever since I came across expert Eleanor Barnes, my bad turned out being good and profitable. She's made success earlier than we thought.
Debt free (including home) and we only have 2k in expenses a month so really we only need about 12k. But we keep 20k there because for water heater, roof reppacement, hvac, etc... you never know
Its not a math problem - this dude did not make the gourd, this dude did not make the worm - he needs to accept the fact that if he makes a living - he makes a living. PERIOD. End of sentence. Full stop. YEAH!!!!
The media is currently barraged with a lot of economic data right now. It takes a lot to see beyond the whole ocean of news on focus on what is important, which is that no matter how low stocks go, they always bounce back. I really ignore all the news and keep investing. recently allocated about $61k to put in the market as we anticipate a crash. Any recommendations?
@MarkFernandez-wf8hkWe're only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08' crash and I've been looking into similar opportunities in this present market, could this coach that guides you help?
I'm left struck with thousands of dollars disappearing from my 401k due to soaring inflation. Where can I safeguard and grow $500k cash for next 2 years at no risk? my goal is to retire early and afford my lifestyle after retirement.
For many years, bonds or other fixed-income assets could produce the yield needed to provide solid income for retirement needs.The importance of having financial safety could be why boomers are turning towards advisors in retirement planning
this is huge! mind if I look up the advisr that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
Thanks for this. could easily spot her website just after inputting her full name on my browser. she replied my inquiry and we scheduled a call for Tuesday.
I'm 22 years old making around $60k this year living rent free with my parents: - no debt - $15k emergency fund - $25k invested in TFSA I fully acknoledge the fact that I'm wasting away that $15k to inflation when I could be investing it but it helps me sleep at night and I need it for when my high milage car breaks down in a few years.
@@SRN625 I'm a Sprinkler Fitter apprentice (2nd out of 4 year apprenticeship program). Currently making $36/hrCAD on a 4 day regular work week here in Toronto Canada. I'm still tryna figure out what I wanna do. I don't love what I do but I don't hate it either. I'll for sure aim to finish my apprenticeship and get my red seal license but my goal is to someday become an Elevator Mechanic (apparently it's a really cool job and they're the highest paid Trade in terms of union wages). What do you for work and what are you looking to get into?
a year worth making 5% instead of 6 months making 0.1% like most people? I think that's fine. i have about 10 months making 5.5% and the rest to investing. I think the point for this guy is don't pile cash forever. if i were in his shoes i might choose a year as well. that's one big mortgage payment..just pay extra and when you get to the last 6 months you just wipe it out.
There's no, "YAYYYY!!!!" These people need to stop having kids without budgeting for them and including them into the emergency fund. Only drawback I see in this scenario is how far above their means. A $4200 mortgage is ridiculous!
doesn't sound like they are living above their means... it's probably more that whats necessary to be comfortable and happy, but it's their choice if they can afford it.
Dave thinks inflation is still 9%, or will soon be again? Based on what? My high yield savings emergency fund and debt payments to myself for deferred subsidized student loans have beaten my mutual funds for several months in a row and beaten all official inflation numbers for the last 6 months. I don't want to long term prefer this to investment, but high yield savings are certainly beating the current 3% inflation. What does Dave know that I don't about inflation creeping back despite high interest rates? It's not like Biden can pass another stimulus with a Republican House, as much as he might like to to get to get reelected.
Luckily yes my income was good, but that’s a business owner even when you have a good year or two the next two years could be terrible. It could all disappear tomorrow. I think you don’t see in this call employee concentration risk, client concentration risk the fact that his business that is paying me well could disappear quickly
No. He has frequently admitted that $1000 is not enough for an emergency fund. This is Baby Step 1, where you are changing your mindset. You are supposed to quickly move to Baby Step 3, where you put aside 3-6 months of expenses as your REAL emergency fund. A $1000 emergency fund is just so you can sleep at night knowing you are on the right track to being in control of your money. It's psychological.
I have $13 000 emergency fund and no debts. But I also live very frugally, well beneath my means. Not everyone's cup of tea, but I feel so free living this way.
You're doing it right.
You got it right.
Its most certainly better than zero!
Where do you keep this amount ?
@@SantosProd 4% yield savings account would be ideal
Jade's subtle look away at 2:02 speaks volumes. Dave's been working on it, but he has a problem cutting off his co-hosts. His daughter's the only one who's openly called him out on it, but im sure its frustrating to everyone. However, it is his show.. and company. Lol
To ask how old he is, which he stated at the beginning of the call.
I was it to!
Dave - center of attention because its my show....OK, then do it yourself Daaaaaave!
I can't stand her.
@@carloswithac She’s great! I’d like to see more of her on the show!
We have 2 year worth of emergency fund and helps me sleep at night. Paid off house, 0 debt of any kind, and we max out our 401k and Roth IRA each year and fund 2 kids 529s a month as well.
Congrats on the peace of mind.
2 year is nuts. At least invest the extra 18 months into blue chip funds
Especially with a paif off house...@@toohda
I love it!
I can surely understand the guy's thinking! Self-employed and with more back-up plans than I could count! Never regretted all of the precautions.
For emergency funds it depends on living situation a bit IMO
Younger Single Person living at home, already paid for student housing or some other supported situation, then 2-3 months with $5k minimum should work fine.
Single or Married without kids, then 3-4 months with a $10k minimum
Family with kid(s) or expecting, then 6 months with a $20k minimum.
Self employed or other job insecurities, then 12 months with a $40k minimum.
Retired or within a year from retirement, then 12-24 months with an $80k minimum.
I like that minimum concept
Very much so a bottom line goal and similar to how I operate☝️
At my point in life 3 month of EF is ok but, I feel better having 8-12 months in a high yield savings account. I’ve learned from my past unemployment
EF?
@@CyberScott86 emergency fund
Emergency fund….. 🤦🏻♂️
Exactly. Once you've been unemployed you look at things differently.
The “you’re a good dad, you’re a good man” is pretty wholesome tbh. Any guy would love hearing that especially from someone who’s as analytical as Dave
I have a year's worth of an emergency fund. Ive had a few friends go months without a job.
Since my 20's, I have taken 4 vacations for at least 2 years, (no income).
I saved for it.
We’re self-employed and our financial advisor has always told us to keep 12 months of expenses in cash. I’ve always thought it’s been excessive.
12 months of emergency funds is a good standard to aim for
I was unemployed for a year and I had 6 months of saving and I quickly learned I need more of an emergency fund. This economy is scary ❤❤.
I was out of work 10 months, my emergency saved me so much trouble and grief. Never imagined I would be out of work for that long.
Were retail or fast food employment not options for temporary work?
How were you unemployed when there's a negative unemployment rate? There's literally more jobs than people
Cause jobs like mine mon-fri 8-5 60k a year are not available and if ur taking fast food jobs paying 2-3 daycare bills ur losing money
So you could not find any job in a year.
Being in construction during the 08 crash was decimating....still have ptsd about not having income.
What event would require more then 6 months of expenses?
UM, what happened 3 years ago?
He has a video production business. How about the strike for the last that lasted for the last 6 months.
He or his wife can have health problems. Or even both of them.
What strike? I've been watching TH-cam for years. No one cares about Hollywood anymore
@@thedopplereffect00 The billion that TV and movies make, say's otherwise.
The multiple billions that TH-cam and other online platforms agrees. @@jimmymcgill6778
@@jimmymcgill6778 the video game industry has far surpassed Hollywood.
Just because Dave Ramsey says "At the very least, have $1,000 in your emergency fund.", that doesn't mean you have to have $1,000 in your emergency fund, exactly.
My sister set up her emergency fund, a long time ago & has $1,200 in it & said "I know Dave Ramsey says to keep $1,000 in your emergency fund, but, I can spare the extra $200, so, it never hurts to have a little bit extra in there...".
In all honesty, I would state to have at least $2k in there because the $1k was back in like the 1990s when his seminar went nationwide.
She should have paid more attention, as that is Baby Step 1, just to get started. It's just a mind trick to get you in a positive mindset.
12 months minimum. Most people miss calculate just how hard it becomes to find a job during a full blown recession.
Plus, you need to consider that once you do manage to find a new job your fund might be run dry and you will need to replenish quick
In London during the GFC those that were unfortunate to lose their job took 6-12 months to find a job and most jobs they found were part time, low income jobs. Even trying to find a cafe, bar waiter job was difficult and you had 20 shortlisted people lining up and competing for 1 cafe position
It's not JUST an emergency fund. It's also cash available for big purchases like water heaters, AC systems, new roof, VEEhickle replacement, etc. It's both.
Should be five different funds.
Dave says those big purchases should each have a sinking fund account. Emergency fund is only for emergencies.
@Lisa-eo9gd this is correct, vehicle replacement is a known coming thing, roof replacement also, it's not like you wake up on day and your roof is 30 years old and surprised a leak started. If you know your roof is getting old plan for it with a sinking fund to be prepared for ir when it's needed, that wouldn't be considered a surprise or emergency. They voluntarily made it an emergency. We even have a seperate sinking fund for health insurance annual max out of pocket when needed. Work the baby steps and get to steps 4-6 and this is when the financial freedom takes over and really makes it easy to build these funds, fund retirement greatly, and be able to make big purchases easily when you get to actually keep your income instead of paying it back out yo everyone else all the time
My car insurance in Miami, FL (with prefect clean record) is close to 1k every 6 months. That has now become another fund to keep.
@Lisa-eo9gd Fine, but for practical purposes I've got all my dollars in HYSA/Ibonds. About 7.5 months, which combines an emergency fund and sinking fund for 2 people employed in completely layoff-proof jobs. I assume the caller is doing the same. Lumping his sinking funds and efunds together. Do people really have a HYSA at Ally for their water heater, Marcus for their AC, Discover for their other appliances, another one for roof, another one for car, and yet another account for their "emergency fund"? That's stupid. You can mix the dollars together.
You get hurt or hospitalized. You're gonna need at least 10k a month just for proper care with really good insurance.
Just had to drop $3k to fix my car . With a 2yr old and another kid on the way. I try to always keep a $10k emergency fund if I can. Doesn’t always work out but you gotta live off less than you make
When you need to dip into your emergency fund, then of course it's going to drop. Then, you rebuild it.
@@spankynater4242 💯
Starting a Business is not a Joke. It takes time and effort and you need to have enough knowledge.
There is a risk and alot of things for learning.
Not easy but possible.
2:00 he cuts off Jade to ask a question the caller already stated.
Jade is the loverly eye candy!
And did 😮
In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.
If you need advice, consider speaking with a financial advisor. Don't get me wrong, you can do it on your own, but financial advisors have a lot more knowledge and expertise in this area.
you are completely right, Advisors have information and paths that are not disclosed to the public.. I profited £560k in 2022 under the tutelage of my Fiduciary-counselor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.
My CFA ’Margaret Johnson Arndt’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I checked Margaret up out of curiosity and i must say i am impressed by her Credentials. i emailed her already, waiting on her response.
I have 12 months of EF. I've been laid off 3x in my career, always found a job within 3 months. As a 48 yr old with 2 college age kids, 1 income, I feel less anxious with a 1 year EF. I contribute to retirement, brokerage account, and paying down mortgage. On baby steps 5-6. spend below my means. Yes I'm doing Ramseyish, feel more comfortable with a bigger EF. great content. thanks for sharing.
What Dave R said to the man is absolutely wonderful. 😊The kindest words he could hear.
When he called him honey? 😂
Lol. Nope, it's not that part of the convo. Guess I should've been more specific. Dave called him a real man and a good Dad. Very touching.
Guys, its not about how much you make a year but how long you can survive if you were to lose your job today. You should strive to have passive incomes from rental properties, investments, interests, etc that will provide you with enough money to pay your bills, foods, etc each month with a little extra for savings. That is the true definition of being wealthy. You dont need to be millionaire to be consider wealthy. Just dont buy expensive cars, go on vacations, eat out, etc. If your passive income is more than your monthly expenses, than you considered wealthy. You can retire at that point and not worry about not having enough money. That will put your mind at ease.
6 months or a year for most is pretty solid. If you had no income spending should drop even more so that should stretch what was saved even more.
@01:00 Extended Hospital Stays/Medical Leave of Absences perhaps(yes there’s Short and Long Term Disability Benefits, but that’s a percentage of your salary).
Dave always say to not worry about inflation. Now he brings up inflation?
He’s rich, so inflation doesn’t affect him (and others like him).
At 5:10 he got to blame Biden for it, so that's why.
When has he ever said not to worry about inflation?
@@spankynater4242 All the time. He didn't even acknowledge inflation until months after it was affecting his callers. Like, he legitimately thinks by not talking about something it'll just go away.
@@robloxvids2233 I've never seen it. I'm guessing you misunderstood his comment.
We have a 1 year emergency fund for all expenses. 6 months causes anxiety for me.
Water heaters, roofs, septic systems, and new A/C systems are all good reasons why renting isn’t evil like so many make it out to be. Pay for any two of those in a year and see how much you like being home owner.
Still better (maybe not with the houseprices today) than renting, because you will need it when you retire to have more predictable expenses when you get old.
If your house payment is $4,200, then you should have around 100k in savings. Dave is out of touch on what it cost to raise kids in a nice house now days.
Who the heck has a $4200 house payment? Do you live in Manhattan? WTH
My guy is renting a mansion. Lol
$4200 isn’t that far from reality.
Rent for a 3 bedroom where I live is over $4000
100k is way overboard, even with 2 kids.
3 months is way to little for a small business. The Money Guys say 1 year, especially if you have employees.
I love how you both interrupt each other and never finish your statements
I keep $250 as emergency.
How far will that get you?
Dave we are family of 4, no car payments and our monthly expenses is 7k. So it’s not that far of. This isn’t pre 2020 anymore
I'd pay off the house first and keep 6 months and he'd have zero to ever worry about
I wonder if I’ll make it 6 months with no income? I’m on my month 3 right now. I’ve applied to 50 places.
What field?
Cancer is the answer. That could keep you out of work longer than 6 months. Not just treatment but recovery afterwards. It can take over a year *after chemo* to get back in to full time work.
Even if you work from home, you’ll spend loads of time at doctors appointments
That's what long term disability insurance is for.
It takes a while to kick in, and not always enough.@@edwinroyal9734
He never lets her finish a sentence c’mon Dave let go of some of the control!
Absolutely, i cringe whenever these two are on together. She never gets to finish her sentence. I love Dave but he needs to be more considerate.
No way, we're here to see Dave, not all those other people.
With brandon in charge....you need 2 years emergency fund.
Seriously, if the dems win another four years we are in major trouble.
Well, okay then, let's go!
With a fully loaded go-bag.
+ if he pays off his mortgage his monthly expenses would be lower so technically he would need less emergency fund.
We have 140k in our buffer fund.
I keep 12 months of an ef.
If, however, you're fully FI retired in your 50s with no debts, you should have 3 to 4 years of living expenses in cash to ride out protracted bear markets (peak to trough to new peak time frame) so you do not sell shares of mutual funds at or near the bottom.
Reminds me of my old friend Fred. He saved over 140,000,000 dollars and lives on my coach.
$140M? Wow! Go Fred!
I’ve NEVER gone more than a week without an income, and I’ve lived in over 15 different states..
I have 100k in savings too... and I have 100k annual income with zero debt with cars and house paid for and im not a dad lol. I am aggressively investing 75 percent of my income because I am 42 and only have 44k in retirement. I am hoping to catch up on retirement 🙏
Ya Dave, houses aré stupid expensive for us peasants down here
$7,000 is a good starting point. That is about the cost to get a water heater replaced, installed, and brought up to code.
$7,000 Fiat Cash
5 ounces Gold
500 ounces of Silver
6 months water
3 weeks food supply
And as much ammunition as you can get
Ounces? What is this, the 1800s? Nobody measures anything in ounces in the civilised world in 2023. @@RusskiCommieBot
7k? I just replaced mine for under 3k.
@@robloxvids2233
I replaced my water heater for $600
Funny thing though, I have an emergency fund of $39k, but also have another $250k sitting in savings accounts.
I know, it's shocking to me too but I'm working on investing all of it. I already invested $150k that was there before.
Basically, why I did it, was because I didn't know anything about investing until the pandemic hit and then i started reading books and watching TH-cam videos on investing.
It's gonna be a little while before all the money is invested, but I'll get there.
May I suggest, that if you're new to investing, the S&P 500 is a pretty good place to start. Good luck to you.
If nothing else, put it in a high interest savings account until you decide. Good for you.
The basic answer is 3 to 6 months of expense. For most that $15,000-$20,000
Put it in a high yield savings account and leave it alone until you need it. Wherever you have your IRA probably offers a HYSA, too. I know ETrade, Fidelity and Vanguard do.
Being 55 I no longer need much of an emergency fund. The only reason I would need it would be if my wife and I both lost our jobs at which point I guess we are retired and I’ll pull from my 401k without penalty.
earliest you can pull money out without penalty is 59.5 years old. also when you are retired it's far better to have 1 - 4 years in high yield savings, if the market goes down 20% you don't want to be forced to sell stock 20% down just to pay the bills and buy food. you have a few years worth so that when the market goes down you let it ride and live off savings. and then sell once it comes back up.
@@JosiahK555 Have you heard of “the rule of 55”? If you separate from your employer during or after the year that you turn 55 you have access to the money in that employer’s 401k penalty free.
4:20 “you own the company.”
I honestly think if you have your own business then it would be good to have an emergency fund worth a year of expenses.
For both your family expenses and business expenses. Absolutely agree.
I would like a 30 year emergency fund ...........just to cover the rest of my life.
I'll put as much in there as makes me feel comfortable.
What a bold statement. And guess what, Dave, and the rest of us, don't care.
what about if some health issue comes up why are they just talking about basic needs
Rent and / or mortgage ×10 = what I keep instantly accessible aka emergency fund
6 months of income plus your insurance deductible and for each of your dependents
Home owners should have 3-5% of homes value as a emergency fund for the house
If you make over 300k a year, why take a mortgage? Why not save to buy cash?
$300k a year is not much monthly if you pay taxes. You are in one of the highest tax brackets and once you put 15% in a 401k, ROTH IRA, etc., health insurance, etc.; it is more like making $100K
Edit: Then you have home insurance, car insurance, property taxes, food, utilities, etc.
high tax. making $300k a year, it is in HCOL, so prices for sfh usually between $1M-$3M, so $300k isnt much. cant buy in cash with houses 3x-10x your gross income
Is step 4, 15% of gross or net income? 😊 And on top of or including compulsory super (Australia)?
15% of gross
You help out people in debt who live in uk too?
Here I am second year making 30k net … still in debt, still just the 1k emergency fund. And I’m 32. no kids. Divorced.
The bigger question is why does an entrepreneur not separate his business funds from personal?
He answered your question. He has 6 months personal and 3 months business.
Why do you assume that's the case. Without going back and rewatching the video, it seemed like he did.
I do!
6 months is outdated advice. With the uncertainty of today's world you should have a one year emergency fund.
An emergency fund in fiat currency is outdated advice. A proper emergency fund would be five ounces of Gold and five hundred ounces of Silver.
Such things belong in the 1800s. Ounces of anything have no place in the 21st century. And gold and silver won't help you. You'll be just as screwed with them as without them@@RusskiCommieBot
I think 1-2yrs worth is good enough.
This is money not being invested, cash on hand
@aolvaar8792 aren't all emergency funds cash in the bank? Coz that's what i was talking about. Maybe -6months to 1 year in the bank and 1 year invested but can be easily liquidated/accessed.
@@Tashas_Travels Dave says EF not to be invested
@@aolvaar8792you can have it in a hight yield savings account which would bring in some money. It's easy to move it to your checking account if you need it.
@@aolvaar8792 hence why the 6-1year emergency fund stays in his account
2008 and 2020 both had people out of work for over a year.
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Debt free (including home) and we only have 2k in expenses a month so really we only need about 12k. But we keep 20k there because for water heater, roof reppacement, hvac, etc... you never know
Up it to $50K
@@wewhoareabouttodiesaluteyo9303 why? We have other non retirement investments as well.
CPI has gone down substantially. 5% is actually making you a return net of inflation now.
There he goes with that hun again
Brag call
That's 90% of the calls
This guy makes $300K a year and worried about an emergency fund. What a joke call
I think he either needs to stop bragging or see a therapist.
Oh here we go ramsey calling the dude honey 😂
Preparing his make viewers for prison environment
Cool
$4200 mortgage? Ooh wee!
Its not a math problem - this dude did not make the gourd, this dude did not make the worm - he needs to accept the fact that if he makes a living - he makes a living.
PERIOD. End of sentence. Full stop.
YEAH!!!!
The media is currently barraged with a lot of economic data right now. It takes a lot to see beyond the whole ocean of news on focus on what is important, which is that no matter how low stocks go, they always bounce back. I really ignore all the news and keep investing. recently allocated about $61k to put in the market as we anticipate a crash. Any recommendations?
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I'm starting with 1000 ans go from there
I'm left struck with thousands of dollars disappearing from my 401k due to soaring inflation. Where can I safeguard and grow $500k cash for next 2 years at no risk? my goal is to retire early and afford my lifestyle after retirement.
For many years, bonds or other fixed-income assets could produce the yield needed to provide solid income for retirement needs.The importance of having financial safety could be why boomers are turning towards advisors in retirement planning
this is huge! mind if I look up the advisr that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
Bitcoin
CD’s are over 5%
Thanks for this. could easily spot her website just after inputting her full name on my browser. she replied my inquiry and we scheduled a call for Tuesday.
I'm 22 years old making around $60k this year living rent free with my parents:
- no debt
- $15k emergency fund
- $25k invested in TFSA
I fully acknoledge the fact that I'm wasting away that $15k to inflation when I could be investing it but it helps me sleep at night and I need it for when my high milage car breaks down in a few years.
Oh that's super good! What do you? if you don't mind me asking.. I'm 28 but in making 45k a year and I'm ready to change careers
@@SRN625 I'm a Sprinkler Fitter apprentice (2nd out of 4 year apprenticeship program). Currently making $36/hrCAD on a 4 day regular work week here in Toronto Canada.
I'm still tryna figure out what I wanna do. I don't love what I do but I don't hate it either. I'll for sure aim to finish my apprenticeship and get my red seal license but my goal is to someday become an Elevator Mechanic (apparently it's a really cool job and they're the highest paid Trade in terms of union wages).
What do you for work and what are you looking to get into?
a year worth making 5% instead of 6 months making 0.1% like most people? I think that's fine. i have about 10 months making 5.5% and the rest to investing. I think the point for this guy is don't pile cash forever. if i were in his shoes i might choose a year as well. that's one big mortgage payment..just pay extra and when you get to the last 6 months you just wipe it out.
5% and upside. If you invest in stocks, there is a chance for downside.
I feel like he called for a pat on the back
most people cant go 7 days with out income
✝️
Heres the thing: in a real emergency, the first place that closes is the banks
If inflation is 9% and you make Dave’s 12% doesn’t that leave a withdrawal rate of 3%? 😂😂 Better tell George!
There's no, "YAYYYY!!!!" These people need to stop having kids without budgeting for them and including them into the emergency fund. Only drawback I see in this scenario is how far above their means. A $4200 mortgage is ridiculous!
Why do you assume he's not budgetting for his children? SMH
doesn't sound like they are living above their means... it's probably more that whats necessary to be comfortable and happy, but it's their choice if they can afford it.
@@spankynater4242 they don't
@@JosiahK555 happy and comfort makes a money pit of a combination
@@christopherpaige406 That's not an answer, because they do.
He likes calling people honey 😂
This guy
Wait. He has a 7 month old baby and has another in the way ? 😂. Slow down there buddy.
That's the best way to do it. Get them out quick without prolonging the diaper phase.
The best way to do it is to only have one. @@superblump87
I'm also an "entrepreneur" which really means that I don't ever want to work for "The Man".
You still work for the "The Man", it's just that you are "The Man".
Damned dude
Dave thinks inflation is still 9%, or will soon be again? Based on what? My high yield savings emergency fund and debt payments to myself for deferred subsidized student loans have beaten my mutual funds for several months in a row and beaten all official inflation numbers for the last 6 months. I don't want to long term prefer this to investment, but high yield savings are certainly beating the current 3% inflation. What does Dave know that I don't about inflation creeping back despite high interest rates? It's not like Biden can pass another stimulus with a Republican House, as much as he might like to to get to get reelected.
Inflation is currently 5%.
@@amireallythatgrumpy6508 which metric are you using? CPI is 3.2%. Most of the other metrics are higher but they're almost all less than 5
Lol talking about inflation, but when you’re pulling from retirement is doesn’t matter anymore…?!
In Joey Roomba’s economy you’ll need to cover 2x more than what you needed in 2021
Curious what your thoughts are in regards to the US having one of the lowest inflation rates in the world. Is Biden to blame for that?
Saying Biden did a good job is like giving an award or scholarship to the best student in summer school. Cleanest shirt in the dirty laundry pile.
@@superblump87 hahahahahahaha what??? Are you comparing it to third world countries like Venezuela and Argentina?!?
@@FrankS111 no, all other countries.
America is as much of a cesspool as those countries. America is no longer first world and has not been for at least half a century. @@FrankS111
$107 in a high yield account 😂 Cheers to a healthy financial life.
That's it?
Take home is between 300k to 350k,, year. “this phone call is about “”” Look how much I make from my Business Dave””
Of course it is one of the typical male calls on this channel to brag
Luckily yes my income was good, but that’s a business owner even when you have a good year or two the next two years could be terrible. It could all disappear tomorrow.
I think you don’t see in this call employee concentration risk, client concentration risk the fact that his business that is paying me well could disappear quickly
For Baby Step #1, save $1000 for emergency fund....I wonder if Dave would say to up it because of the crap economy....
No. He has frequently admitted that $1000 is not enough for an emergency fund. This is Baby Step 1, where you are changing your mindset. You are supposed to quickly move to Baby Step 3, where you put aside 3-6 months of expenses as your REAL emergency fund. A $1000 emergency fund is just so you can sleep at night knowing you are on the right track to being in control of your money. It's psychological.